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Decentralized Finance (DeFi) platform Uniswap’s governance protocol token UNI went live a few days ago and the community came forward and showed immediate support for the new token. Within the first 90 minutes of the Uniswap’s Twitter announcement, more than 1000 likes were garnered. And now, Uniswap’s governance token is already the fourth-most traded token on cryptocurrency exchanges.
CoinGecko claims that the last 24-hour trading volume for UNI presently stands at $4.7 billion. It is preceded by Tether which is at $38.9 billion, Bitcoin at $20.7 billion, and Ethereum at $12.7 billion. This goes on to prove that Uniswap is head-on-head with the best and the most established players in the crypto space.
Within a single day, UNI had been listed on more than one dozen exchanges, is featured in nearly 40 pairings, and has driven such large volumes eventually. UNI as implied is the governance token of Uniswap and has been launched much as a response to Competitor SushiSwap. SushiSwap also known as the clone of Uniswap and has some features similar to it like the added bonus of distributing its own SUSHI token as a reward to token users. But this was superficially done in order to give governance privileges to liquidity providers.
UNI’s current trading volumes are as below:
Source: CoinGecko
Some of the initial trading that happened could be because it seemed a promising novel token waiting to be explored. Some people even chose to sell the 400 UNI which they received as network participants. But there still have been lots of buyers who have been pushing the price high. As of the press time, Uniswap price today is $6.96 with a 24-hour trading volume of $4,589,519,098. This is an automatic price shoot of 33% in the last 24 hours. It has a circulating supply of 11 Million coins with a maximum threshold fixed at 1 Billion coins. At present the Uniswap’s version 2 is the most active market trading it.
Source: CoinGecko
Earlier this week when the UNI was not launched, uniswap had around $750 million in total value locked. Today after the UNI token has been launched, it has become more than double of it. It is standing at $1.6 Billion which was sufficient to overtake Aave for the numero uno position in the metric according to DeFi Pulse.
Such figures point out in one direction which is that users are increasingly interested in Decentralized applications which allow them to earn interest rates. Considering the overly volatile nature of the DeFi markets ruled by the demand and supply factors along with market sentiments, Aave has still managed to remain steady and going strong. It has been holding a TVL above the $ 1 billion mark since August 15th. Maker which currently ranks third in terms of total value locked broke the $1 billion barrier on July 27th and has been there longer.
Uniswap’s UNI governance token distribution has certainly done a great deal of good for the DeFi landscape but it is still early to tell if its run will continue or it will flounder midway.